reasury Stock Coastal Corporation issued 25.000 shares of $5 par value common st
ID: 2521173 • Letter: R
Question
reasury Stock Coastal Corporation issued 25.000 shares of $5 par value common stock at $15 per share and 6,000 shares of $50 par value, eight percent preferred stock at $85 per share. Later, the company purchased 3.000 shares of its own common stock at $20 per share. a. Prepare the journal entries to record the share issuances and the purchase of the common shares b. Assume that Coastal sold 2.000 shares of the treasury stock at $25 per share. Prepare the general journal entry to record the sale of this treasury stock. C. Assume that Coastal sold the remaining 1.000 shares of treasury stock at $18 per share. Prepare the journal entry to record the sale of this treasury stock. General Journal Ref. Description Debit Credit Common Stock Issued common stock Percent Preferred StockExplanation / Answer
Coastal Corporation
General Journal
Ref
Description
Debit
Credit
a.
Cash
$375,000
Common Stock
$125,000
Paid-in Capital, Common Stock
$250,000
(Issue of common stock)
Cash
$510,000
8% Preferred Stock
$300,000
Paid-in Capital, Preferred Stock
$210,000
(Issued 8% Preferred Stock)
Treasury Stock
$60,000
Common Stock
$60,000
(Acquired common stock)
Cash
$50,000
Treasury Stock
$40,000
Paid-in Capital, Treasury Stock
$10,000
(Sold 2,000 shares of Treasury Stock)
Cash
$18,000
Paid-in Capital, Treasury Stock
$2,000
Treasury Stock
$20,000
(Sold 1,000 shares of Treasury Stock for $18 per share)
General Journal
Ref
Description
Debit
Credit
a.
Cash
$375,000
Common Stock
$125,000
Paid-in Capital, Common Stock
$250,000
(Issue of common stock)
Cash
$510,000
8% Preferred Stock
$300,000
Paid-in Capital, Preferred Stock
$210,000
(Issued 8% Preferred Stock)
Treasury Stock
$60,000
Common Stock
$60,000
(Acquired common stock)
Cash
$50,000
Treasury Stock
$40,000
Paid-in Capital, Treasury Stock
$10,000
(Sold 2,000 shares of Treasury Stock)
Cash
$18,000
Paid-in Capital, Treasury Stock
$2,000
Treasury Stock
$20,000
(Sold 1,000 shares of Treasury Stock for $18 per share)
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